China Southern Airlines orders Airbus jets worth US$21b as Boeing deal remains rumour
Boeing sidelined as Chinese carrier picks Airbus in $21B deal
China Southern Airlines announced a $21.37 billion order for 137 Airbus A320neo jets on Wednesday, with 102 aircraft going to the parent carrier and 35 to its subsidiary Xiamen Airlines. The order, pending shareholder and state approval, reinforces Airbus's dominance in China, a key battleground in the global aviation market. Delivery for China Southern is set for 2028 to 2032, while Xiamen Airlines will receive its planes from 2029 to 2032. Both carriers received discounts, which China Southern described as standard and consistent with previous Airbus orders.
This deal adds to a growing trend among Chinese state-owned airlines favoring Airbus over US rival Boeing. China Eastern ordered 101 A320neo jets in March, and last year, Air China and other carriers ordered 148 A320s from Airbus. The orders align with China's major initiatives like the Greater Bay Area and Belt and Road, aiming to modernize fleets and boost competitiveness. Meanwhile, a rumored Boeing deal with Beijing remains uncertain, potentially tied to a future visit by former President Donald Trump.
- China Southern ordered 102 A320neo jets, Xiamen Airlines 35, totaling 137 aircraft
- Deal value is $21.37 billion at list price, with standard industry discounts
- Delivery scheduled from 2028 to 2032, pending shareholder and state approval
Why It Matters
Airbus cements its lead in China's aviation market, while Boeing's rumored deal remains stalled.